Bollywood Veggies Pte Ltd v Chief Assessor: Property Tax Assessment & Annual Value Dispute
Bollywood Veggies Pte Ltd appealed to the General Division of the High Court of Singapore against the Chief Assessor's decision regarding the annual value (AV) of their property for property tax purposes. The court, presided over by Justice Aedit Abdullah, dismissed the appeal, finding that the Chief Assessor's assessment was reasonable and fair. The primary legal issue was the basis for determining the AV for property tax, the standard of review for the Chief Assessor's decisions, and the material that may be relied upon in such a review.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Tax
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Bollywood Veggies appealed against the Chief Assessor's property tax assessment. The court dismissed the appeal, finding the assessment reasonable and fair.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Bollywood Veggies Pte Ltd | Appellant | Corporation | Appeal Dismissed | Lost | |
| Chief Assessor | Respondent | Government Agency | Decision Upheld | Won | Rajiv Rai of Inland Revenue Authority of Singapore Sonia Khoo Meng of Inland Revenue Authority of Singapore |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Aedit Abdullah | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Suang Wijaya | Eugene Thuraisingam LLP |
| Eugene Singarajah Thuraisingam | Eugene Thuraisingam LLP |
| Rajiv Rai | Inland Revenue Authority of Singapore |
| Sonia Khoo Meng | Inland Revenue Authority of Singapore |
4. Facts
- Bollywood Veggies operates a property in Lim Chu Kang with a vegetable farm, bistro, event space, office, and workers’ quarters.
- The land is leased from the Singapore Land Authority for 20 years from 15 April 2001.
- The Chief Assessor amended the annual value of the property from $87,000 to $107,100 effective 1 December 2018.
- The annual value was assessed pursuant to section 2(3)(a) of the Property Tax Act, which allows assessment of 5% of the estimated value.
- The Chief Assessor used the annual rent payable for the land lease and 5% of the total building costs to determine the annual value.
- The building costs figure of $593,000 was provided by the architect for alteration and addition works completed on 31 March 2009.
- The appellant argued that the building costs should not be included in assessing annual value.
5. Formal Citations
- Bollywood Veggies Pte Ltd v Chief Assessor, Tax Appeal No 15 of 2020, [2021] SGHC 233
6. Timeline
| Date | Event |
|---|---|
| Land leased from the Singapore Land Authority for 20 years | |
| Alteration and addition works completed at the Property | |
| Architect provided building costs to the Inland Revenue Authority of Singapore | |
| Respondent reviewed and included the estimated value of the buildings in assessing the annual value for the Property from 2015 | |
| Chief Assessor notified the appellant that the annual value for the Property was amended | |
| Tax Appeal No 15 of 2020 filed | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Property Tax Assessment
- Outcome: The court found that the Chief Assessor's assessment was reasonable and fair.
- Category: Substantive
- Sub-Issues:
- Valuation of buildings
- Inclusion of building costs in annual value assessment
- Standard of Review
- Outcome: The court determined that the appropriate standard of review is one of reasonableness and fairness in the Chief Assessor's ascribing of value.
- Category: Procedural
- Sub-Issues:
- Reasonableness
- Fairness
- Admissibility of Evidence
- Outcome: The court found that the Chief Assessor could rely on the information from the Architect, and the hearsay rule was not offended.
- Category: Procedural
- Sub-Issues:
- Hearsay
- Reliance on Architect's Email
8. Remedies Sought
- Reversal of Chief Assessor's decision
- Reassessment of annual value
9. Cause of Actions
- Appeal against property tax assessment
10. Practice Areas
- Taxation
- Property Valuation
11. Industries
- Agriculture
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Valentino Globe BV v Pacific Rim Industries Inc | Court of Appeal | Yes | [2009] 4 SLR(R) 577 | Singapore | Cited regarding the appellate court's discretion to consider evidence and determine the propriety of a lower tribunal's decision. |
| Comptroller of Income Tax v AQQ and another appeal | Court of Appeal | Yes | [2014] 2 SLR 847 | Singapore | Cited regarding the standard of review for findings of fact in appeals from the Income Tax Board of Review. |
| Associated Provincial Picture Houses, Limited v Wednesbury Corporation | Not Available | Yes | [1948] 1 KB 223 | England and Wales | Cited in reference to the standard of Wednesbury unreasonableness. |
| HSBC Institutional Trust Services (Singapore) Ltd (trustee of Capitaland Mall Trust) v Chief Assessor | High Court | Yes | [2020] 3 SLR 510 | Singapore | Cited regarding the standard of reasonableness and fairness in ascribing value to a property for annual value assessment. |
| Chief Assessor v Glengary Pte Ltd | Court of Appeal | Yes | [2013] 3 SLR 339 | Singapore | Cited in relation to an appeal concerning section 2(3)(b) of the Property Tax Act and whether committed sales could be taken into consideration in an assessment. |
| HSBC Institutional Trust Services (Singapore) Ltd (trustee of Capitaland Mall Trust) v Chief Assessor | Court of Appeal | Yes | [2020] 1 SLR 621 | Singapore | Cited regarding the standard of reasonableness and fairness in ascribing value to a property for annual value assessment. |
| City Developments Ltd v Chief Assessor | Court of Appeal | Yes | [2008] 4 SLR(R) 150 | Singapore | Cited regarding the challenge to the Chief Assessor's exercise of discretion under section 2(3) of the Property Tax Act. |
| City Developments Ltd v Chief Assessor | Court of Appeal | Yes | [2008] 2 SLR(R) 397 | Singapore | Cited regarding the appellant's argument of ultra vires as a ground of appeal. |
| The Legends Fort Canning Park Pte Ltd v Chief Assessor | Valuation Review Board | Yes | [2015] SGVRB 1 | Singapore | Cited regarding whether the Chief Assessor's assessments of various properties under the provision was excessive. |
| City Developments Ltd v Chief Assessor | Valuation Review Board | Yes | [2021] SGVRB 3 | Singapore | Cited regarding whether the Chief Assessor's assessments of various properties under the provision was excessive. |
| HSBC Trustee (Singapore) Ltd v Chief Assessor and Comptroller of Property Tax | Valuation Review Board | Yes | [2018] SGVRB 2 | Singapore | Cited regarding how the Chief Assessor should arrive at estimating the value of the property, in particular whether the common law principle of rebus sic stantibus should apply. |
| Jeyaretnam Kenneth Andrew v Attorney-General | Court of Appeal | Yes | [2014] 1 SLR 345 | Singapore | Cited regarding the legality of government actions. |
| Tan Seet Eng v Attorney-General and another matter | Court of Appeal | Yes | [2016] 1 SLR 779 | Singapore | Cited regarding the legality of government actions. |
| First DCS Pte Ltd v Chief Assessor and another | High Court | Yes | [2007] 3 SLR(R) 326 | Singapore | Cited regarding the assessment of annual value using the contractor's test method. |
| Collector of Land Revenue v Alagappa Chettiar | Federal Court | Yes | [1971] 1 MLJ 43 | Malaysia | Cited regarding land valuation involving an element of appreciation and impression. |
| Chief Assessor v National Shipbreakers Pte Ltd | Court of Appeal | Yes | [1979–1980] SLR(R) 623 | Singapore | Cited regarding the definition of annual value and its notional or hypothetical nature. |
| The London County Council v The Churchwardens and Overseers of the Poor of the Parish of Erith in the County of Kent, and the Assessment Committee of the Dartford Union | House of Lords | Yes | [1893] AC 562 | England and Wales | Cited regarding the notional nature of rent in determining annual value. |
| Management Corporation Strata Title Plans Nos 1298 and 1304 v Chief Assessor and another | High Court | Yes | [2006] 1 SLR(R) 465 | Singapore | Cited regarding the notional nature of rent in determining annual value. |
| HSBC Institutional Trust Services (Singapore) Ltd v Chief Assessor | High Court | Yes | [2013] 2 SLR 173 | Singapore | Cited regarding the notional nature of rent in determining annual value. |
| Robinson Brothers (Brewers), Ltd v Assessment Committee for the No 7 or Houghton and Chester-le-Street Area of the County of Durham | Not Available | Yes | [1937] 2 KB 445 | England and Wales | Cited regarding the inquiry into the annual value of a property being a primarily economic one. |
| Telereal Trillium v Hewitt (Valuation Officer) | Supreme Court | Yes | [2019] UKSC 23 | United Kingdom | Cited regarding the test of whether the occupation under the hypothetical tenancy is such as to be of value. |
| Hewitt (Valuation Officer) v Telereal Trillium | Upper Tribunal | Yes | [2016] UKUT 258 (LC) | United Kingdom | Cited regarding the test of whether the occupation under the hypothetical tenancy is such as to be of value. |
| Lambeth London Borough v English Property Corporation Ltd and Shepherd (Valuation Officer) | Not Available | Yes | [1980] RA 279 | England and Wales | Cited regarding exceptional circumstances where a nil valuation could be appropriate. |
| Hoare (Valuation Officer) v National Trust | Not Available | Yes | [1998] RA 391 | England and Wales | Cited regarding exceptional circumstances where a nil valuation could be appropriate. |
| Lee Tat Development (Pte) Ltd v Chief Assessor | High Court | Yes | [1995] 2 SLR(R) 785 | Singapore | Cited regarding the Chief Assessor's sole discretion in applying section 2(3) of the Property Tax Act. |
| Bata Shoe Co Ltd v Chief Assessor | Not Available | Yes | [1959–86] SPTC 71 | Singapore | Cited regarding the purpose of section 2(3) of the Property Tax Act for properties with no rental or palpably low rental. |
| Cho Chih Yee v Chief Assessor | Not Available | Yes | [1968] 2 MLJ xxxii | Malaysia | Cited regarding the burden on the appellant to prove that the Chief Assessor's decision was wrong. |
| Browne v Dunn | House of Lords | Yes | [1893] 6 R 67 | United Kingdom | Cited regarding the rule that a party must cross-examine a witness on matters they intend to dispute. |
| Orion-One Development Pte Ltd (in liquidation) v Management Corporation Strata Title Plan No 3556 (suing on behalf of itself and all subsidiary proprietors of Northstar @ AMK) and another appeal | Court of Appeal | Yes | [2019] 2 SLR 793 | Singapore | Cited regarding the definition of hearsay evidence. |
| Soon Peck Wah v Woon Che Chye | Court of Appeal | Yes | [1997] 3 SLR(R) 430 | Singapore | Cited regarding the definition of hearsay evidence. |
| Saga Foodstuffs Manufacturing v Best Food | High Court | Yes | [1994] 3 SLR(R) 1013 | Singapore | Cited regarding the use of a document to show that it was the information used by a party, not as proof of the facts contained therein. |
| FC Retail Trustee Pte Ltd v Chief Assessor and another | Valuation Review Board | Yes | [2021] SGVRB 2 | Singapore | Cited regarding the valuation of fittings in a food court. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254, 2005 Rev Ed) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 2(1) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 2(3)(a) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 2(4) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 6 | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 6(1) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 20(1) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) s 35 | Singapore |
| Income Tax Act (Cap 134, 2014 Rev Ed) s 81(2) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Annual Value
- Property Tax
- Chief Assessor
- Valuation Review Board
- Building Costs
- Estimated Value
- Hypothetical Tenancy
- Reasonableness
- Fairness
15.2 Keywords
- Property Tax
- Annual Value
- Chief Assessor
- Valuation
- Singapore
- Land
- Buildings
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Revenue Law | 95 |
| Property Tax | 90 |
| Annual Value | 85 |
| Property Law | 80 |
| Appeals | 60 |
| Standard of Review | 50 |
| Civil Procedure | 30 |
| Evidence | 25 |
16. Subjects
- Property Tax
- Valuation
- Tax Appeals